Global orders beef up Rane (Madras) Q1, 2016 results

Rane (Madras), which manufactures steering and suspension products and die casting products, has announced its standalone results for the quarter ended June 30, 2016. 

Sales and operating income for April-June 2016 was Rs 227.56 crore compared to Rs 202.57 crore in April-June 2015. The steering and linkage division’s sales saw an increase of 7% thanks to growth across segments in India OEM business and international business. The die-casting division grew 41% supported by a strong order flow from global clientele and commencement of new supplies for Indian customers.

The company says it has continued its stringent cost control initiatives and also benefited by better product mix resulting in material cost improvement. However, it has experienced inflationary pressures on labour, power and other operational costs. 

“Rane (Madras) Ltd’s performance in Q1 is supported by favourable trends in the Indian vehicle market. It is likely to benefit in the upcoming quarters with the anticipated above-normal monsoon, growth in the farm tractor segment and commencement of supplies to major Indian OEMs. We are ramping up our production at our new die-casting plant in Hyderabad to service new customer orders. We are working on several initiatives to improve our operational performance and drive margin expansion,” said L Ganesh, chairman, Rane Group.